**AMD Q3 Earnings: Revenue Up, Profits Down, Stock Falls**

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Post on Oct 30, 2024

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AMD Q3 Earnings: Revenue Up, Profits Down, Stock Falls

AMD, the chipmaker known for its CPUs and GPUs, released its Q3 2023 earnings report on October 26th, 2023, showing mixed results. While revenue surpassed expectations, profits fell short, leading to a dip in the company's stock price.

Key Takeaways from AMD Q3 Earnings:

• Revenue: AMD reported revenue of $5.59 billion, exceeding analysts' forecasts of $5.57 billion. This represents a 10% increase year-over-year.
• Earnings: However, AMD's adjusted earnings per share came in at 54 cents, missing analysts' expectations of 60 cents. This marked a significant decline from the previous year's Q3 earnings.
• Segments: The Computing and Graphics segment, which includes CPUs and GPUs for PCs and gaming consoles, saw revenue growth of 12% year-over-year, primarily driven by strong sales of Ryzen CPUs. The Enterprise, Embedded and Semi-Custom segment, encompassing products for data centers and gaming consoles, experienced a 4% year-over-year revenue decline.
• Outlook: AMD's CEO, Dr. Lisa Su, remained optimistic about the long-term outlook for the company, citing the growing demand for high-performance computing and artificial intelligence (AI) solutions.

Factors Influencing AMD's Performance:

• PC Market Slowdown: The global PC market has been experiencing a decline, impacting the sales of CPUs and GPUs. This trend is expected to continue in the short term.
• Inventory Adjustments: Several companies in the technology sector are adjusting their inventories, leading to reduced demand for chips.
• Competitive Landscape: AMD faces stiff competition from Intel in the CPU market and Nvidia in the GPU market.
• Economic Uncertainty: Global economic uncertainty and rising inflation are impacting consumer spending, which can influence demand for technology products.

Stock Reaction:

Following the release of the earnings report, AMD's stock price fell by 9% in after-hours trading. Investors seemed to be reacting to the missed earnings expectations and concerns about the company's future performance in a challenging market environment.

What's Next for AMD?

AMD is focused on expanding its presence in high-growth markets like data centers, AI, and gaming. The company is investing heavily in research and development to deliver innovative products that meet the evolving needs of its customers. The company is also exploring opportunities for strategic acquisitions to further enhance its competitive position.

It's important to note that AMD's Q3 earnings represent a snapshot of the company's performance at a specific point in time. The chip industry is dynamic and subject to various market forces. AMD's future success will depend on its ability to navigate these challenges and capitalize on emerging opportunities.